Accounting MCQs Assignment

Question 3 of 22
Consider the following facts:
- Company A had product sales revenues of $30,000 for the month.
- Its cost of goods sold was $18,000 for the month.
- Its other operating expenses were $2,000 for the month.
- Company A also had rent revenue of $500 for the month.
- Also during the month, it sold a delivery truck for a gain of $1,000 during the month.

For the month, Company A's operating income (loss) was:



Question 4 of 22
Consider the following facts:
- Company E has a beginning inventory of $30,000.
- Purchases during the period were $130,000
- $4,000 of purchases were returned
- Freight-in charges were $10,000
- Company E's physical inventory count indicated $20,000 goods on hand at the end of the period.

Company E's cost of goods available for sale was:



Question 5 of 22
Consider the following facts:
- Company A had product sales revenues of $30,000 for the month.
- Its cost of goods sold was $18,000 for the month.
- Its other operating expenses were $2,000 for the month.
- Company A also had rent revenue of $500 for the month.
- Also during the month, it sold a delivery truck for a gain of $1,000 during the month.

For the month, Company A's gross profit was:



Question 6 of 22
Consider the following facts:
- Company A has the following inventory information:
- Inventory at the beginning of January was 15 units purchased at $8.00 each.
- On January 8, purchased 60 units @ $8.30 each
- On January 17, purchased 30 units @ $8.40 each
- On January 25, purchased 45 units @ $8.80 each
- On January 31, a physical count showed 45 units on hand
- Company A uses the periodic inventory system
- Company A uses the specific identification method.
- The ending inventory includes 10 units from each of the purchases and 15 units from the beginning balance.

Company A's cost of goods sold is:

7.

Beginning inventory at cost = $32,000

Cost of goods purchased at cost = $136,750

Net sales = $178,000

Beginning inventory at retail = $46,000

Cost of goods purchased at retail = $179,000

What is the cost of the ending inventory for Product A under the retail inventory method?

Question 8 of 22

Consider the following facts:

- Company A begin business operations in the month of April.

- On April 1, it purchased 150 units of goods for $390.

- On April 10, it purchased 200 units of goods for $585.

- On April 15, it purchased 200 units of goods for $630.

- On April 28, it purchased 150 units of goods for $510.

- At the end of the month, it discovered that it had 200 units on hand after completing its physical inventory count.

- Company A uses the average-cost inventory accounting method.

Company A's cost of goods sold for April is:

Question 9 of 22

Consider the following facts:

- Company A has the following inventory information:

- Inventory at the beginning of January was 15 units purchased at $8.00 each.

- On January 8, purchased 60 units @ $8.30 each

- On January 17, purchased 30 units @ $8.40 each

- On January 25, purchased 45 units @ $8.80 each

- On January 31, a physical count showed 45 units on hand

- Company A uses the periodic inventory system

Company A's ending inventory under LIFO is:

Question 10 of 22

Consider the following facts:

- Company A purchased goods for $20,000.

- Its credit terms were 2/10, n/30.

- Company A returned $400 of the goods to the seller and received credit on its account.

- Company A paid the freight on the shipment of the goods originally. The freight cost was $100.

- Company A made final payment for the goods within the discount period.

Based on this scenario, Company A's inventory:

A. None of these answers are correct.

B. increased by $19,306.

C. increased by $19,700.

D. increased by $19,308.

E. increased by $19,208.

Question 11 of 22

Consider the following facts for Company A:

- Beginning inventory = $45,000

- Cost of goods purchased = $190,000

- Ending inventory = $55,000

Based on these facts, Company A's Days in Inventory ratio is ______ days.

Question 12 of 22

Consider the following facts:

- Company V uses a periodic inventory system

- Purchases were $600,000 during the period

- Purchase Returns and Allowances were $25,000 during the period

- Purchase Discounts were $11,000 during the period

- Freight-In was $19,000 during the period

- Beginning Inventory was $45,000

- Ending Inventory was $55,000

- Net Sales were $750,000 during the period

Cost of Goods Sold for the period was:

Question 13 of 22

Consider the following facts:

- Company A's accounting records at the end of the year shows the following:

Purchase Discounts $5,600

Freight In $7,800

Purchases $201,000

Beginning Inventory $23,500

Ending Inventory $28,800

Purchase Returns $6,400

- Company A uses the periodic inventory system.

Company A's cost of goods purchased is:

Question 14 of 22

Consider the following facts:

- Company A had product sales revenues of $30,000 for the month.

- Its cost of goods sold was $18,000 for the month.

- Its other operating expenses were $2,000 for the month.

- Company A also had rent revenue of $500 for the month.

- Also during the month, it sold a delivery truck for a gain of $1,000 during the month.

For the month, Company A's non-operating income (loss) was:

Question 15 of 22

Consider the following facts for Company A:

- Beginning inventory = $71,000

- Cost of goods purchased = $292,000

- Ending inventory = $69,000

Based on these facts, Company A's Days in Inventory ratio is ______ days.

Question 16 of 22

Company A had the following account balances at the end of its fiscal year:

Cost of goods sold = $212,400

Freight-out = $7,000

Insurance expense = $6,000

Salaries and wages expense = $58,000

Rent expense = $32,000

Sales discounts = $7,000

Sales returns and allowances = $13,000

Sales revenue = $380,000

Company A's net income for the period is $ ___________.

Question 17 of 22

Consider the following facts:

- Company A had merchandise inventory of $550,000 at January 1

- For the year, it had purchases of $2,250,000

- For the year, it had net sales of $3,200,000

- The physical inventory on December 31 showed $500,000 in the warehouse

- Company A's gross profit on sales was 30%

- Company A's suspects some of its ending inventory is missing due to theft

The estimated cost of the missing inventory is:

Question 19 of 22
Consider the following facts:
- Company A uses the perpetual inventory system
- It records inventory purchases at net cost
- It purchased goods for $6,000 with credit terms of 2/10, n/30
- It returned half of the goods purchased
- The discount period expired before it paid the outstanding invoice

The journal to record the payment of the invoice when paid includes a:

A. credit to cash for $2,940.

B. debit to an expense account for $60.

C. credit to Cash for $2,000.

D. debit to Merchandise Inventory for $3,000.

E. None of these answers are correct

Question 20 of 22
Consider the following facts:
- Company A sells merchandise on account for $3,000 to Company C
- The credit terms of the sale are 2/10, n/30
- Company C returns $450 of the merchandise
- Company C pays the outstanding balance within the discount period

Which of the following is true about the journal entry, Company A will make when Company C pays?



A. Sales Discounts will debited for $51

B. Accounts Receivable will be debited for $2,550

C. Cash will be debited for $2,550

D. Sales Returns and Allowances will be debited for $501

E. None of these answers are correct

Question 21 of 22
Consider the following facts:
- Company A had inventory of $300,000 at the beginning of the period.
- It wants inventory on hand to be $350,000 at the end of the period.
- Net sales for the period are expected to be $1,500,000.
- The gross profit rate is expected to be 30%.

How much merchandise should Company A expect to purchase during the year?



Question 22 of 22
Consider the following facts:
- Company A had inventory of $500,000 at the beginning of the year.
- It purchased $1,600,000 of inventory during the year.
- Its ending inventory for the year was $600,000.
- During the year it sold products for $2,500,000.

Company A's cost of goods sold and gross profit rate for the year was:



A. $1,500,000 and 60%.

B. $1,500,000 and 40%.

C. $1,000,000 and 66.7%.

D. None of these answers are correct

E. $1,000,000 and 40%.